First U.S. Community Bank Holding Company to
Issue a Bond Dedicated to Supporting Social & Environmental
Projects
BOSTON, June 30,
2022 /PRNewswire/ -- Berkshire Hills Bancorp, Inc.
(NYSE: BHLB) ("Berkshire" or the
"Company") announced today the completion of the public offering
and sale of its inaugural Sustainability Bond, offering
$100.0 million of its 5.50%
fixed-to-floating rate subordinated notes due 2032 (the "Notes").
The Notes were sold at par, resulting in $98.3 million in net proceeds, after underwriting
discount and estimated offering expenses. The Company intends to
use an amount equal to the net proceeds to finance or refinance new
or existing social and environmental projects consistent with its
Sustainable Financing Framework.
Berkshire is the first public
U.S. community bank holding company with under $150 billion in total assets to issue a
Sustainability Bond.
"Berkshire has been at the
forefront of meeting the financing needs of its communities for
more than 175 years. This moment is no different as our
Sustainability Bond offering reflects our commitment to supporting
the communities we serve and providing the capital needed for
targeted projects to help businesses prosper, individuals realize
the dream of homeownership and support the transition to a
low-carbon economy," stated Nitin
Mhatre, Berkshire's CEO.
"This is a significant step towards Berkshire achieving its goal of being a
high-performing, leading socially responsible community bank while
enabling the financial potential of its communities," he added.
"We are thrilled by the investor response to our sustainability
bond issuance. It demonstrates investor confidence in Berkshire's vision, performance, credit
discipline, environmental, social, and governance (ESG), and
capital strategy. Furthermore, this issuance will help reduce our
cost of capital while delivering a meaningful benefit to our
communities," added Berkshire's
Chief Financial Officer Subhadeep
Basu.
Moody's Investors Service ("Moody's"), in a report dated
June 21, 2022, assigned Berkshire and Berkshire Bank (the "Bank")
first time ratings. Moody's assigned the Bank a long-term deposit
rating of "A3". In addition, Moody's assigned the Company an
investment grade long-term issuer rating of "Baa3". The rating
outlooks are "Positive" for both the Company and the Bank.*
Berkshire's Sustainable
Financing Framework will guide the selection and management of
projects. Sustainalytics, a Morningstar Company, and the global
leader in high-quality ESG research, ratings, and data,
has independently verified that Berkshire's Sustainable Financing Framework
"is credible and impactful and aligns with the International
Capital Market Association's (ICMA) Sustainability Bond Guidelines
2021, Green Bond Principles 2021 and Social Bond Principles
2021"**. Projects financed will focus on eligible categories
outlined in Berkshire's
Sustainable Financing Framework including renewable electricity
generation; green buildings; renewable energy technology, storage
and manufacturing; energy efficiency in commercial, residential and
public buildings; affordable housing; workforce housing; and
financial inclusion and access activities. Additionally,
Berkshire intends to publish a
report annually until full allocation describing the amount of net
proceeds allocated to each eligible project category, descriptions
of specific projects financed, unallocated balances and, where
feasible, qualitative and quantitative measures of the expected
environmental or social impact.
"Our Sustainable Financing Framework addresses areas critical to
the long-term success of our communities and is consistent with our
broader ESG commitment. We view our sustainable financing
activities as a catalyst to deliver on our BEST Community Comeback
and to be an engine for positive change in our communities. As a
result of our Sustainability Bond we'll support the clean-energy
transition, help small businesses and nonprofit organizations
within low-moderate income neighborhoods and improve equitable
homeownership," noted Gary Levante,
Berkshire's SVP of Corporate
Responsibility.
Keefe, Bruyette & Woods, A Stifel Company, and PNC
FIG Advisory, part of PNC Capital Markets LLC, acted as joint
book-running managers for the offering. PNC Capital Markets LLC
acted as the ESG Structuring Agent. Luse Gorman, PC acted as
legal counsel to the Company and Hunton Andrews Kurth LLP acted as
legal counsel to the underwriters.
About Berkshire Hills Bancorp
Berkshire Hills Bancorp is the parent of Berkshire Bank.
The Bank's goal is to be a high-performing, leading socially
responsible community bank in New England, Upstate New York, and
beyond. Berkshire Bank provides business and consumer banking,
mortgage, wealth management, and investment services.
Headquartered in Boston,
Berkshire has approximately
$12.1 billion in assets and operates
105 branch offices in New England and New
York, and is a member of the Bloomberg Gender-Equality
Index. To learn more, call 800-773-5601 or follow us on Facebook,
Twitter, Instagram, and LinkedIn.
Forward-Looking Statements
This news release contains "forward-looking statements" within
the meaning of the federal securities laws. Words such as "may,"
"will," "should," "could," "would," "outlook," "plan," "potential,"
"estimate," "project," "believe," "intend," "anticipate," "expect,"
"target" and variations of such similar expressions are intended to
identify such forward-looking statements. Examples of
forward-looking statements include, but are not limited to,
possible or assumed estimates with respect to the financial
condition of the Company, our expected or anticipated revenue, and
our results of operations and our business, including earnings
growth; revenue growth in retail banking, lending and other areas;
loan origination volumes; current and future capital management
programs; non-interest income levels; tangible capital generation;
market share; expense levels; stock repurchases; and other business
operations and strategies, as well as statements regarding the
impact of the ongoing COVID-19 pandemic, and any current or future
variants thereof; inflation and interest rates; economic activity;
geopolitical conflicts; and market conditions.
All forward-looking statements are subject to risks,
uncertainties and other factors, many of which are beyond our
control, that may cause the actual results, performance or
achievements of the Company to differ materially from any results
expressed or implied by such forward-looking statements. Such
factors include, among others: there may be increases in
competitive pressure among financial institutions or from
non-financial institutions; the net interest margin is subject to
material short-term fluctuation based upon market rates; changes in
deposit flows, loan demand or real estate values may affect the
business of Berkshire Bank; changes in accounting principles,
policies or guidelines may cause the Company's financial condition
to be perceived differently; changes in corporate and/or individual
income tax laws may adversely affect the Company's business or
financial condition or results of operations; general economic
conditions, either nationally or locally in some or all areas in
which the Company conducts business, or conditions in the
securities markets or the banking industry, may be different than
the Company currently anticipates; legislative, regulatory or
policy changes may adversely affect the Company's business or
results of operations; technological changes may be more difficult
or expensive than the Company anticipates; success or consummation
of new business initiatives or the integration of any acquired
entities may be more difficult or expensive than the Company
anticipates; and litigation or other matters before regulatory
agencies, whether currently existing or commencing in the future,
may delay the occurrence or non-occurrence of events longer than
the Company anticipates.
Further, the ongoing COVID-19 pandemic (including any current or
future variants of the COVID-19 virus) and the related local and
national economic disruption may continue to result in a decline in
demand for our products and services; increased levels of loan
delinquencies, problem assets and foreclosures; an increase in our
allowance for loan losses; a decline in the value of loan
collateral, including real estate; a greater decline in the yield
on our interest-earning assets than the decline in the cost of our
interest-bearing liabilities; and increased cybersecurity risks, as
employees continue to work remotely. Additionally, financial
markets or Company operations may be adversely affected by the
current or anticipated impact of military conflict, including the
conflict between Russia and
Ukraine, terrorism or other
geopolitical events.
These and other factors that may affect forward-looking
statements are more fully described under "Forward-Looking
Statements" in Item 1 and "Risk Factors" in Item 1A of our
most recent Annual Report on Form 10-K for the fiscal year ended
December 31, 2021, filed with the U.S. Securities and Exchange
Commission (the "SEC") on March 1, 2022, and other factors
discussed in subsequent filings with the SEC.
All forward-looking statements attributable to the Company are
expressly qualified in their entirety by these cautionary
statements. Forward-looking statements speak only as of the date on
which such statements are made. There is no assurance that future
results, levels of activity, performance or goals will be achieved.
Except as required by law, we disclaim any obligation to update
these forward-looking statements, whether as a result of new
information, future events or otherwise. Accordingly, you should
not place undue reliance on forward-looking statements contained in
this press release.
Note Regarding Rating
* A rating is not investment or financial advice and is not a
recommendation to buy, sell or hold securities. Ratings may be
subject to revision or withdrawal at any time by the assigning
rating organization. Each rating agency has its own methodology for
assigning ratings and, accordingly, each rating should be evaluated
independently of any other rating.
Note Regarding Second Party Opinion
** Sustainalytics' second party opinion is provided for
informational purposes only and does not constitute an endorsement
of any securities, product or project, does not constitute
investment or financial advice, and does not represent any type of
credit or securities rating or an assessment of the issuer's
economic performance, financial obligations nor of its
creditworthiness.
Contacts
Investor Relations Contacts:
Kevin Conn, SVP, Investor Relations &
Corporate Development
Email: KAConn@berkshirebank.com
Tel: (617) 641-9206
David Gonci, Capital Markets
Director
Email: dgonci@berkshirebank.com
Tel: (413) 281-1973
Media Contact:
Gary
Levante, SVP, Corporate Responsibility &
Communications
Email: glevante@berkshirebank.com
Tel: (413) 447-1737
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SOURCE Berkshire Hills Bancorp, Inc.